Taco Bell Cantina's menu features "tapas-style" appetizers for customers to share, including nachos, quesadillas, chicken tenders and rolled tacos. The regular menu will also be available.

The restaurant will have an open kitchen design and a mural by a local artist. A similar location is scheduled to open in San Francisco.

Taco Bell said the new restaurant concept reflects the "millennial trend of seeking more urban environments." Right now, it says the vast majority of its nearly 6,000 U.S. locations are in suburban areas, with less than 1 percent in urban neighborhoods.

But the chain said it planned to add 2,000 locations in the U.S. over 10 years. Meredith Sandland, Taco Bell's chief development officer, said "several hundred" of them will have the design catered to city streets, with a portion of those likely serving alcohol.